NLC raises alarm over alleged N20bn ‘emergency’ spending in TCN
Nigeria Labour Congress Raises Alarm Over Proposed N20 Billion Expenditure by Transmission Company
The Nigeria Labour Congress (NLC) has expressed serious concerns regarding an alleged plan by officials of the Transmission Company of Nigeria (TCN) to allocate nearly N20 billion toward electricity grid expansion projects.
The NLC claims that this expenditure, labeled as “emergency refurbishment,” may be an effort to divert funds from the already financially challenged power utility. In a letter to Minister of Power Adebayo Adelabu, signed by NLC President Joe Ajaero, the union cautioned that the proposed spending could destabilize TCN’s financial standing.
Ajaero has alleged that a faction within TCN is attempting to justify the spending under the guise of an “emergency,” attempting to circumvent standard procurement protocols and conceal dubious transactions through complex documentation. He warned that if these procurement plans proceed, TCN’s financial health could further decline, jeopardizing its operational effectiveness for years to come.
Ajaero also noted that the national grid remains in a chronic state of crisis, not for lack of technical capability, but rather due to the misallocation of funds intended for infrastructure improvements. For instance, he cited a planned budget of N191 million for erosion control at Tower T89 in Ihovbor, Okada, and N290.65 million for fencing and drainage work at the Biu 132/33KV substation. Additionally, he highlighted an allocation of N226.02 million for work on Tower T27 along the Etsako-Okpella-Ajaokuta corridor, which he deemed inconsistent with sound financial management practices.
The NLC further alleged that there are plans to procure specialized transformers and switchgear in separate batches from the same vendor at progressively inflated prices, signaling potential irregularities in the procurement process. Ajaero asserted that such actions could be a means of channeling funds through inflated contracts rather than facilitating legitimate upgrades.
Moreover, Ajaero accused officials of planning to stockpile materials, such as insulators and conductors, at prices significantly exceeding market rates, citing this as a pretext for preparing for possible grid failures.
The NLC is calling on Minister Adelabu to suspend all current “emergency” procurement efforts within TCN until a thorough forensic audit is conducted. Additionally, the union has urged an investigation into the reported sale of land behind the TCN substation in Katampe, Abuja. Ajaero also requested a review of an alleged promotion scheme involving a staff member hired on September 16, 2021, aimed at advancing to the position of Assistant General Manager by 2026, which he claims contravenes established promotion guidelines.
